The cost of housing in Singapore

The cost of housing in Singapore

If you are almost clear about your preferences you can’t forget the price of the rent which is a determining factor that can make us change our mind. As I said, both the area and the type of housing have an important impact on the price. The cost of housing in Singapore is very high, but because there are options, you will surely find something suitable to your preferences.

The cost of a condominium

Condominiums are the most chosen by expatriates although the cost of housing is higher. High block developments with common areas such as swimming pool, gymnasium, play areas or meeting rooms. A 3-bedroom apartment near the CBD (Central Business District) can range from S$6000 to S$20,000 per month. It depends on the height, the orientation or the views and if it is furnished or not. In Sentosa or Keppel Bay it could go up to S$8,300 or even S$13,000 the cheapest. And the further away from the center the lower the price, being able to find them in a range of S$3,300 to S$5,000.

The cost in Apartment

The apartments, let’s remember that they are smaller than the condominiums and with less services and facilities. They are also older. Here, the cost of housing can vary, a 3 bedroom apartment and near the CBD would be around S$5,000/ S$7,000. And the further away from the center the better offer, you can find them for around S$3,000. In the same size, the HDB can be found for S$2000 or even less the further you are from the center. If you are looking to rent a room, from S$500 to S$800 are the cheapest options.

Some expats, especially those who won’t be staying long periods of time, prefer the service apartments. These are apartments that include services similar to hotels. Fully furnished, good quality and with common facilities such as swimming pool. The only handicap is that they usually only have one or two bedrooms.

The rent is flexible in time, can be paid by the day, week, or month. The price is not cheap since they offer you cleaning services, housekeeping, laundry, ironing, etc…. But they are comfortable for a relatively short stay in Singapore. An alternative to this concept, if you are willing to lose the services they offer, is Airbnb. But this concept, by law, is not valid for a few days. Follow Ready-Home for more useful information.

The cost at home

The cost of the most expensive housing is a house. But we can’t leave aside the little houses, which are very nice, the most economical bungalows or villas can cost between S$18,000 and S$35,000.

Where to look

You can launch a search on the Internet or make use of the services of a real estate agent who will help you find the property that best suits your needs. This last option is very common in Singapore and it depends on the length of the contract that you sign and will pay the landlord or the tenant.

Websites for apartment search: iproperty and Property Guru. Normally you will be attended by a real estate agent, it is rare that in the first vivistas you are attended by the owners. To rent rooms you can also look, in addition to the above sites, in carousell (also is a PPP for sale of second-hand items)

Rental procedure

In addition to the cost of the property, the procedure for renting and the deposit must also be taken into account. Once we have found the ideal place to live, it is time to formalize the relationship. The first step will be the Letter of Intent (LOI) where you will be asked for a photocopy of your passport, your employment card and possibly the amount of one month’s rent, or faith deposit.

Later, when you sign the contract, you will have to pay more money. If you sign a rental contract for a year, you will be asked for one month’s deposit and one month’s rent in advance. If you sign a two-year lease, you may be asked for two months’ deposit and one month’s rent in advance. From that amount, the amount previously given in the letter of intent will be subtracted. And be careful how many years you sign because the penalties for non-compliance are high. The contract cannot be terminated as easily as in Spain. To be able to do so you have to include a “diplomatic clause” that contemplates the breaking of the contract under certain conditions agreed with the owner.

Finally, the lease has to be sealed by the Singapore authorities, after payment of the tariff rates (Stamp Duty). To protect both parties only when it is sealed is when it is considered valid and legal in case of dispute. The fee to be paid is the responsibility of the tenant. The calculation is simple: for a rental agreement of 4 years or less, 0.004 is applied to the total amount to be paid during the rental period.

For example: A monthly rent of S$5,000 for two years’ rent will be 5,000 x 24 months x 0.004 = S$480

If the rental period will exceed 4 years, the calculation will be the total of the rent paid in one year by 0.016. Example: A monthly rent of S$5,000 for five years of rent will be 5,000 x 12 months x 0.016 = S$960

For more information about the rental process, you can find more information here: “Procedure for rental”.

I hope that with this information you are ready to embark on this fascinating adventure of being an expatriate in Singapore. Check out Verticus condo review to learn more.